International Sales News - As Seen on TV Products

International news, issues, and trends for innovative consumer products in the direct response television industry (DRTV), as well as tips for export management & international product sales. This blog focuses on the As Seen on TV product category.

Wednesday, July 16, 2008

How To Choose The Right Chinese Factory

There is no doubt that deciding to manufacture your product in China poses many cost-saving and efficiency perks. Yet, with over 200,000 factories open currently in China and hundreds more expected to open this year, finding the right factory for you may seem to be like a lot of work. Doing the research to find an appropriate factory for your business is an essential step, and failure to do so could end up devastatingly costly to your business. Below are some suggestions on criteria to consider when selecting a Chinese factory.
  • Identify suppliers by creating a database of all that you can find via: trade shows, visiting web sites, participating in China trade organizations, and networking.
  • Narrow down your database by looking at key factors such as: experience in producing similar items, the history of the factory in terms of reputation and reliability.
  • Look at their physical location. Chinese factories are assessed Value Added Taxes on the goods they produce and the percentage varies from province to province. Choosing a factory located in a higher taxed province can significantly affect your cost.
  • Assess their communication skills in terms of speed in response, clarity and efficiency of contact.
  • Evaluate their production in capacity in relation to your needs. In the DRTV industry demand for products can fluctuate greatly in a very short amount of time, so it is important to find a factory that is able to scale production quickly.
  • Of course consider price and quality. To avoid being taken advantage of obtain samples of similar items they have produced and explain the quality will be closely scrutinized.
Finally, once you have narrowed down your list and have decided on a factory an inspection of the factory is essential. Look for appropriate machinery, if they have enough staff, and inquire about their quality control measures and testing procedures.

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